Junior Achievement USA (National Office)

According to the Junior Achievement USA consolidated audit of June 30, 2023 (Note 1 re: Nature of Operations):

"Junior Achievement USA® is the Regional Operating Center for the United States and reaches out to the local community through a network of JA Areas (area offices) who educate and inspire young people to value free enterprise, business and economics to improve the quality of their lives. ... Each area office is a community-based organization that serves a specific geographic area. Area offices are incorporated under the guidelines of its respective state and by-laws, which govern the actions and responsibilities of the area office's Board of Directors. The Regional Operating Center and the area offices join together under the terms of a signed agreement whose guiding principle is mutual support. As of June 30, 2023, over 102 U.S. area offices provided programs in 50 states. The area offices' financial statements are not included in the financial statements of Junior Achievement USA, since it does not have a controlling interest in the area offices' Board of Directors or a financial interest in the area offices' operations..."

CharityWatch's rating of Junior Achievement USA does not include the financial activities of the over 102 U.S. area offices since the area offices' financial statements are not included in the Junior Achievement USA audited consolidated financial statements (as noted above).

The rating does include the financial activities of 3DE National, LLC, a 501(c)(3) public charity wholly-owned by Junior Achievement USA, which are consolidated in the Junior Achievement USA audited financial statements for the fiscal year ended June 30, 2023. All material intercompany transactions and balances have been eliminated in the audited consolidated financial statements.

According to the Junior Achievement USA consolidated audit of June 30, 2023 (Note 1 re: Contributed Nonfinancial Assets):

"For the years ended June 30, 2023 and 2022, contributed nonfinancial assets recognized within the consolidated statements of activities included donor-restricted software and related 'Share the American Dream' program deployment services of $2,454,687 and $2,137,306, respectively, and other in-kind gifts without donor restrictions of $175,356 and $84,293, respectively..."

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to the Junior Achievement USA consolidated audit of June 30, 2023 (Note 13, Related-party Transactions, Activity with JA Worldwide, Inc.):

"The Organization and JA Worldwide, Inc. are related parties that are not financially interrelated organizations. Through a program and support fee agreement between JA Worldwide, Inc. and the Organization, JA Worldwide, Inc. assessed a program and support fee of 1% of prior fiscal year gross revenues of each of the local area offices for their use of logos and trademarks owned by JA Worldwide, Inc. The Organization remits this fee to JA Worldwide, Inc. from the program and support fees the Organization collects from each local area office. As a result, the Organization recorded an expense of $1,243,604 and $1,380,513 during 2023 and 2022, respectively, to JA Worldwide, Inc..."

According to the Junior Achievement USA consolidated audit of June 30, 2023 (Note 13, Related-party Transactions, Activity with USA Area Offices):

"...The Organization also receives program and support fee income from area offices. These fees totaled $13,504,749 and $14,063,003 for the years ended June 30, 2023 and 2022, respectively..."

According to the Junior Achievement USA consolidated audit of June 30, 2023 (Note 14, Significant Estimates and Concentrations, Contribution Concentrations):

"Contribution revenue (including grants and in-kind contributions) of $34,653,591 and $21,627,754 in 2023 and 2022, respectively, comprised approximately 60% of the Organization's total support and revenue. One donor comprised approximately 40% of total contribution revenue in 2023."

According to the Junior Achievement USA (JA USA) tax filing for the fiscal year ended June 30, 2023, JA USA reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"There are two key components of the executive compensation philosophy of JA USA:

1. Reward for performance

2. Provide reasonable and competitive pay packages with those offered to leaders of organizations comparable to JA USA in terms of size, complexity and mission impact.

As part of the reward for performance the executive compensation subcommittee (the committee) of the board of governors has adopted the management incentive compensation plan (MIC). MIC is intended to stimulate and reward results and achievement necessary to accomplish the multiple objectives of JA USA's strategic plan. The MIC plan is designed to:

A) Motivate growth in total revenue and program impact to enhance services to the community.

B) Link accomplishment of the organization's mission and objectives with the compensation of the organization's managers.

C) Control costs by providing variable compensation based on performance to enhance affordability and offering a competitive incentive and total cash compensation program

D) Enhance the focus, motivation and retention of key organizational managers.

In setting the annual incentive compensation opportunities for the MIC for each executive, the committee targets the median of the comparable market data for that executive's position for target performance and the upper quartile of the comparable market data for that executive's position for superior performance. There is a cap on the amount of incentive that any executive can earn from the MIC.

The committee uses discretion in determining the level or achievement of certain performance measurements. The committee also annually examines the comparable market data for these positions...

...The executive committee of the Board of Directors may, in their sole discretion, and at any time, elect to amend, suspend, or terminate the plan."

JA USA reports "Bonus & incentive compensation" payments to eleven individuals in calendar year 2022, including $271,133 paid to Jack E. Kosakowski, President & CEO, with total reported compensation of $852,001. The "Bonus & incentive compensation" payments to the other ten individuals ranged from $20,798 to $96,818, with associated total compensation ranging from $230,335 to $459,884 (IRS Form 990, Schedule J, Part II).

According to the 3DE National LLC (3DE) tax filing for the fiscal year ended June 30, 2023, 3DE reports re: Compensation, Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (IRS Form 990, Schedule J, Part II):

3DE reports "Bonus & incentive compensation" payments to seven individuals in calendar year 2022, including $97,666 paid to John Harris, CEO, with total reported compensation of $493,205. The "Bonus & incentive compensation" payments to the other six individuals ranged from $13,007 to $28,014, with associated total compensation ranging from $183,685 to $263,973 (IRS Form 990, Schedule J, Part II).